Spreading Innovation for the Power Sector Transformation Globally. Amsterdam, 3 October 2017

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Brittany Lambert
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1 Spreading Innovation for the Power Sector Transformation Globally Amsterdam, 3 October

About IRENA Inter-governmental agency established in 2011 Headquarters in Abu Dhabi, UAE IRENA Innovation and Technology Centre Bonn, Germany

2 About IRENA Inter-governmental agency established in 2011 Headquarters in Abu Dhabi, UAE IRENA Innovation and Technology Centre Bonn, Germany Permanent Observer to the United Nations New York 152 Members 28 States in Accession Mandate: Assist countries to accelerate renewable energy deployment

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4 Renewable power already has a strong business case Solar Auctions Results Wind Turbines % Renewable Energy Auctions Analyzing 2016 Solar module -80%

but materialising its potential require additional efforts in system

integrate high Generation becomes more decentralized The flow of electricity

changes, having an increasingly active role share of variable renewable energy

5 but materialising its potential require additional efforts in system integration The power sector paradigm changes, creating challenges to integrate high Generation becomes more decentralized The flow of electricity becomes bi-directional at certain moments in time The role of consumers changes, having an increasingly active role share of variable renewable energy in the system The traditional baseload generation concept disappears The system requires flexibility 5

6 No lack of innovations but what is relevant for the local context? We need to map and understand the implications of these innovations for the power sector Value spatial complementarities - interconnections Electrification of other sectors Electric Vehicles Storage Encourage Flexibility Value complementarities in VRE Decentralized system System Operation Market regulation RE Tech. Enabling Infrastructure Business Models Digitalization - IoT Blockchain Aggregators- VPP Platform business model

7 Emerging Innovations Power Sector Transformation E-mobility Storage and Electric Vehicles Smart Charging (mobile storage) Provide flexibility to the grid Grid Services: Primary and secondary reserves: Enhanced Frequency Response Frequency Containment Reserve Frequency Restoration Reserve Energy Shifting Behind-the-meter: Solar self consumption Community Storage Increased Power Quality Peak shaving Grid to Vehicle (G2V): Load management: peak shifting Vehicle to Grid (V2G): Primary and secondary reserves Other ancillary services Energy shifting Vehicle to Home (V2H): Solar self consumption Increased Power Quality Peak shaving

8 But what s needed to implement e-mobility projects? new roles for stakeholders E-mobility and smart charging requires the participation of many actors with coordinated responsibilities and roles, contributing to the creation of an e-mobility market, integrated with the electricity market DSO have to balance fluctuating power requests and injections from decentralised renewable generation. Energy supply retails seek to use smart charging, as a measure to support their power plants portfolio strategy, and as a possible revenue stream coming from ancillary services sold to the DSO Source: Cired Paper Charging electric vehicles in a liberalized electricity market E-Mobility customers must be engaged Charging Spot Operators need considering charging requests from consumers and optimizing their costs based on electricity market signals E-Mobility Service Provider requests charging access following requests by their e- mobility customers. 8

Understand customer behaviour and create awareness of the possibilities to use load management Customer support and empowerment,

electric mobility market participants to invest in smart charging solutions and services, including innovative grid fees, ICT

9 What else is needed? Adapting regulation Regulatory adaptations need to take place along the entire supply chain of the power sector Retail market: KEY: Understand customer behaviour and create awareness of the possibilities to use load management Customer support and empowerment, through efficient price signals or other load management schemes Distribution Incentivise distribution system operators (DSOs) and electric mobility market participants to invest in smart charging solutions and services, including innovative grid fees, ICT infrastructure financing models, and others Wholesale market The wholesale processes should be adjusted, so that customers can offer their flexibility to the market, both in terms of stored energy and control reserve services. Aggregators could play an important role here 9

One more innovation Blockchain: No middleman By promoting P2P trading and though emerging cryptocurrencies, blockchain incentivizes growth in decentralized generation Through smart contracts,

10 One more innovation Blockchain: No middleman By promoting P2P trading and though emerging cryptocurrencies, blockchain incentivizes growth in decentralized generation Through smart contracts, blockchain makes distributed grid management easier Prosumers generate power beyond their needs and feed it into the grid through a blockchain-enabled e meter The flow of electricity is automatically encoded in the blockchain Algorithms match buyers and sellers in real time based on preferences and encode smart contracts into blockchain Smart contracts execute when electricity is delivered, transferring payment in cryptocurrency from buyer to seller Other nodes in the network verify the transactions Applied to larger interconnected grids, might lead to: No need for retailers No need for system operators - If smart contracts secure frequency and voltage control as well as balancing the grid system as a whole 10

11 What s needed to implement blockchain in power sector? Hardware Smart Grid, Smart Metering Multiple Blocks producers and consumers Traditional processing platforms Software Blockchain support software Smart Contracts and Cloud platform Communication protocol Agree and develop common interoperable standards along with data storage and identity, smart contract and record ledger 11

12 Continuous approach to build an innovation network for energy transition 1 st Innovation Landscape Report Innovation Week 2016 Innovation week 2018 Three days conference: 200+ experts from public and private sector Discussions across the complete innovation life cycle, from R&D to commercialization Based on real-life case studies on emerging nontechnology innovations Identification of replicable and implementable innovations Analysis of case studies, lessons learnt Track the energy transformation, monitor the progress, map new innovations We invite you to engage!

13 Spreading Innovation for the Power Sector Transformation Globally Today s session objective: Better understand the promising innovations that aid the power sector transformation and how this innovations can be replicated and scaled up in other geographical regions in order to accelerate the energy transition

We invite you to engage! Dolf Gielen: dgielen@irena.

14 We invite you to engage! Dolf Gielen: Francisco Boshell: Arina Anisie: 14

Spreading Innovation for the Power Sector Transformation Globally. Amsterdam, 3 October 2017

Spreading Innovation for the Power Sector Transformation Globally Amsterdam, 3 October 2017 1 About IRENA Inter-governmental agency established in 2011 Headquarters in Abu Dhabi, UAE IRENA Innovation and